Saudi Arabia Temporarily Halts Oil Exports from the Red Sea Following Houthi Attacks

Saudi Arabia announced on July 25 that it has temporarily halted all oil shipments from the Red Sea following attacks by Houthi rebels on two oil tankers in the Bab el-Mandeb Strait. Khalid al-Falih, the Saudi Minister of Oil, stated that two giant VLCC oil tankers were targeted by Houthi attacks in the Red Sea on Wednesday morning, with one sustaining minor damage. Al-Falih added that the country has suspended all oil exports from the sea until 'the situation is clarified and security is restored to maritime transport through Bab el-Mandeb.' The Saudi-led coalition issued a statement published by the Al-Ekhbariya network, claiming that the rebels 'nearly caused an environmental disaster.' Shortly before, a Houthi-affiliated television network claimed, without providing details, that the group had targeted the Saudi warship 'Dammam' on the 'western coast.' The Saudi-led coalition has been engaged in a campaign in Yemen since three years ago to restore power to Abdrabbuh Mansur Hadi, the President of Yemen, with the Houthis receiving support from the Islamic Republic. Reports indicate that the two tankers targeted by Saudi Arabia belonged to the 'Bahri Group,' each capable of carrying two million barrels of oil. According to Agence France-Presse, the 'Bahri Group' stated that the decision to suspend exports through the Red Sea was made 'to ensure the safety of the crew, ships, and prevent oil spills into the sea.' Turki al-Maliki, the coalition spokesman, stated that 'this terrorist attack poses a dangerous threat to the freedom of navigation in international waters of the Red Sea.' The Saudi-led coalition has warned on various occasions about the potential targeting of commercial ships in the Red Sea by the Houthis. The Bab el-Mandeb Strait is located at the southern end of the Red Sea and is where the Red Sea meets the Gulf of Aden. The U.S. Energy Information Administration states that 59 million barrels of oil and similar products were shipped to customers in 2015, accounting for more than 60% of total exports. Three maritime chokepoints play a major role in transferring these exports: the Strait of Hormuz, followed by the Suez Canal and Bab el-Mandeb. Of the 18.5 million barrels of oil transported daily from the Strait of Hormuz to global markets, about 5 million of that is sent to Europe through Bab el-Mandeb (which is nearly 20 kilometers wide) and the Red Sea.